EURUSD rebounds to 1.0688 due to weaker US dollar.
On Thursday, the EURUSD pair extended its rebound near 1.0688 during early European trading hours. The rebound in the major pair is supported by selling pressure in the US Dollar Index (DXY) to 105.78. However, the upside in EURUSD may be limited because the market expected the European Central Bank to lower interest rates in June, weighing on the Euro (EUR) against the US dollar.
Technical Outlook
The pair’s bearish outlook remained unchanged below the critical 100-period EMA.
The first upside goal is around 1.0700, with the initial support level at 1.0622.
From a technical standpoint, EURUSD remains bearish on the four-hour chart, with the major pair trading below the crucial 100-period Exponential Moving Average (EMA). However, the Relative Strength Index (RSI) is currently in positive zone around 55, implying that further gains are possible.
The initial upside obstacle for the key pair will appear near the 50-period EMA and round figure at 1.0700. The 100-period moving average (EMA) around 1.0745 is another upside filter to keep an eye on. Further north, the next barrier is expected around a low of March 22 and a psychological level of 1.0800, on the way to a high of April 9 at 1.0885.
On the other hand, the major pair’s initial support level is 1.0622. Which is close to a low from April 12. The next level of dispute to monitor is the 1.0595-1.0600 range. Which represents the lower limit of the Bollinger Band and the round mark. Any follow through selling below the latter will lead to a November 2 bottom of 1.0565.
